Bus. Of Fashion : Can Instagram Own Fashion Week?

Can Instagram Own Fashion Week?
This week, Instagram’s top fashion liaison Eva Chen released a playbook for staging digital fashion shows on the platform, signalling the beginning of the end for a one-size-fits-all approach to fashion week.

On Wednesday, Instagram’s Vice President of Fashion Partnerships Eva Chen released a 13-page "playbook" on how to stage a virtual fashion show on the platform, covering practical pointers on topics from sending invitations to harnessing influencers to recreating backstage interviews.

Social distancing measures and travel bans aimed at slowing the spread of the Covid-19 pandemic have forced the cancellation of traditional fashion shows for the foreseeable future, presenting a land grab opportunity for popular digital platforms like Instagram.

YouTube is also a contender. Its own fashion liaison Derek Blasberg recently worked with Carine Roitfeld to reimagine her annual AmfAR charity show as a virtual event. Then, there’s the fast-growing video-sharing app TikTok, which is hot with teenagers and tweens.

But Instagram is best positioned to seize the opportunity. The platform has long been a favourite of industry insiders and fashion fans alike. And for many brands, whose runway shows now double as consumer marketing spectacles, Instagram engagement is already a critical success metric and shows are often conceived with elaborate sets and performance elements that function as Insta-bait for influencers.

Now, lockdowns have pushed millions of consumers to embrace live video as a next-best alternative to real-life interaction, driving a 70-percent spike in usage of Instagram’s "Live" functionality in April. The platform is said to be testing a new ‘Simulcast to Facebook’ feature that would allow users to reach even larger audiences. And, this week, Mark Zuckerberg, founder and chief executive of Facebook, Instagram’s parent company, announced new shopping features, meaning shows staged on the platform could have a better chance of driving sales.

Instagram is certainly a compelling option for brands mulling how and where to stage virtual fashion shows this season. And yet, fashion councils in London, Paris and Milan, which organise some of the world’s most important fashion weeks, are building their own destinations to host digital fashion weeks in June and July, targeting consumers as well as industry professionals, and putting themselves in competition with the likes of Instagram.

How will they drive significant traffic to these destinations? Will influencers and journalists find them compelling enough to amplify? And if you were a brand, wouldn’t you rather use a platform with a proven user experience where large numbers of people already gather?

It’s not hard to imagine Instagram disrupting these platforms, along with the very notion of holding digital fashion weeks in the first place.

Traditional fashion weeks exist because the physical world is frictionful. When people must travel to another country to attend a fashion show, it’s logical to bundle brands together and hold shows at a particular place and time to minimise friction and maximise engagement.

But the internet is different. Just as e-commerce has unbundled department stores, eliminating the need to buy everything under one roof when a universe of specialist retailers is only one click away, platforms like Instagram reduce the need for digital fashion weeks that aggregate brands together at one time and place, allowing innovation to flourish by making it easier for designers to show their collections whenever, wherever and however they want.

Of course, the pandemic won’t cancel physical fashion shows forever. Fashion weeks have an important role to play in bringing the industry together. And digital events are likely to prove poor substitutes for the magic of traditional shows, which powerfully harness the physical presence of the "right" people — celebrities, influencers and other tastemakers — to get fashion’s dream machine whirring, turning dresses into objects of desire.

Importantly, Instagram does not see the app as a substitute for physical fashion shows. “In no way do we see Instagram as a replacement for the traditional show, but we want to do what we can to provide a solution during these times, and we hope this is a good place to start,” reads its playbook.

But when physical events do return and fashion weeks with them, brands are unlikely to revert back to a one-size-fits-all approach to showing. It’s easy to imagine a designer like Virgil Abloh staging a fashion analogue to Travis Scott’s virtual concert in the battle royale video game Fortnite, which attracted 12.3 million concurrent players, for his next Louis Vuitton men’s show. Why would he return to a traditional catwalk template when the pandemic passes?

It’s doubtful that Instagram will ever own or disrupt fashion week in its entirety. But a season or two of brands showing on its platform and exploring new possibilities for how and when to present their collections could certainly rewire the way fashion week works.

>>> Europe : Brokers Upgrades & Downgrades - 25th of May 2020 V2 (+)

>>> Up
* Coca-Cola HBC Raised to Buy at Wood & Company; PT 2,383 pence
* JPMorgan Asia Growth & Income PLC Raised to Positive at Stifel
* Marks & Spencer Raised to Buy at Liberum
* Prosegur Cash Raised to Outperform at BBVA; PT 94 euro cents (+)

>>> Down
* Nemetschek Cut to Hold at Hauck & Aufhaeuser; PT 58 euros (+)
* Scottish Oriental Cut to Neutral at Stifel

>>> Initiation


>>> Call
* Bayer’s Potential Settlement of Some Suits Is Positive: Baader (+)
* Carlsberg Fixes Its U.K. Problem With Marston’s JV, Citi Says

FT : Can Kevin Mayer transform TikTok?

Can Kevin Mayer transform TikTok?
Star Disney executive takes on challenge of steering Chinese sensation through US turbulence

Homer Simpson, Darth Vader and Captain America have a shared back-story: they were all brought to Disney by Kevin Mayer. 

Now the square-jawed, all-American media executive is preparing for his own epic adventure, with a company that some see as on the wrong side of the tracks.

In June the 57-year-old will take charge of the Chinese app TikTok, whose presence on the smartphone screens of one billion people around the world has brought it to the keen attention of policymakers from Washington to Delhi.

As a dealmaker at Disney, and then as the head of its streaming service, which has racked up more than 50m subscribers in under six months, Mr Mayer is known as a problem solver who works gruelling hours.

But after he was passed over for the top job earlier this year, in a decision that opened up questions about Disney’s commitment to streaming, the invitation to join the board of ByteDance, the $75bn Beijing-based juggernaut that owns TikTok, became irresistible.

One of Disney’s senior executives, who discussed the move with Mr Mayer, said they had agreed there were “great opportunities” in applying Bytedance’s technology, particularly the algorithm that predicts what viewers will enjoy, more widely.

“At an operational level, ByteDance has the most advanced AI, it’s way more evolved than companies like Amazon, and Kevin sees great opportunities in that,” the Disney executive said.

One example is Resso, the music-streaming platform that ByteDance has launched in India and which allows users to match songs with video clips and animated images. If Resso signs up big music labels, “its power in artificial intelligence and video recommendations could make it a real competitor [to Spotify],” said one senior executive at a music label.


But Mr Mayer has little experience of navigating the treacherous waters swirling between the US and China, nor of dealing with the often prurient content that has made TikTok both popular and controversial.

“He is in a sensitive political zone,” said the Disney executive. “He has to build transparency in the US business, and make it acceptable to the political establishment in the US. He also has to align TikTok with its Chinese masters. And he has no experience of either.”

The company is awaiting the outcome of a US national security probe. Politicians have criticised it over the unproven potential to share foreign user data with the Chinese government, as well as for its content moderation.

“We have a bit of a communications problem, I think, with political leaders,” said Bill Ford, a ByteDance board member and investor through his private equity group General Atlantic. “Everything from [us] being part of the Communist Party to sharing data from TikTok with the Chinese government — which is all factually incorrect.” 

Mr Mayer is “looking forward to meeting with government leaders to increase their understanding of TikTok's business”, Mr Ford added.

As it tries to appease markets outside of China, ByteDance is weighing how far it should go in splitting TikTok away from its Beijing parent.

Mr Ford said that building a “TikTok board” was “something we're working on”, though he later added in a statement that there were no plans to introduce a separate “board of directors”. Both he and a TikTok spokesperson said the company was instead exploring creating more outside advisory positions. 

“The most important part is to create a structure that gives the confidence to know that TikTok is run according to American standards . . . and global standards,” said Philippe Laffont, a ByteDance board member and head of the tech hedge fund Coatue Management.

“They will do product development in the US and TikTok will ultimately list in New York,” predicted the Disney executive. But one ByteDance investor denied this, saying: “There are other ways to solve any issues and address any concerns about things like data privacy. We will have to be local everywhere. We will try to be rational.”

No background could be more blue-chip, in the eyes of Washington, than Mr Mayer’s Disney pedigree, especially as TikTok faces headaches over how it protects the children using its app. Last year, it was fined $5.7m by the FTC for misusing kids’ data.

But he “can still become a target”, said one Chinese media executive based in Los Angeles, who was pessimistic about the deteriorating relationship between Beijing and Washington.

For ByteDance, Mr Mayer represents the bridgehead for its global expansion plans.

In March, its founder Zhang Yiming announced that he aimed to have 100,000 employees by the end of 2020, an increase of 40,000, the equivalent of hiring almost the entire staff of Facebook in nine months. In April, the company posted 10,000 new jobs, with the biggest locations outside of China in the US, London and Singapore.

In the US, ByteDance has hired executives including Erich Andersen, a former Microsoft vice-president, as its global general counsel, Ole Obermann, a former Warner Music vice-president, Blake Chandlee, the former Facebook advertising chief and Vanessa Pappas, the former head of creative insights at YouTube.

But several US executives have turned down offers and some of the company’s new hires felt “handcuffed” by the ultimate decision-making power resting in Beijing, according to two media industry figures who know them.

As well as hiring, Mr Mayer is charged with making Bytedance’s international businesses profitable and expanding its stable of music, games and video beyond China. If he succeeds, he will have created the first truly global Chinese software brand.

Bytedance’s overseas business only brought in around 1 per cent of its Rmb130-140bn ($18-20bn) revenues last year, according to the Chinese media site LatePost, which reports that this year it is aiming to increase revenues to Rmb180bn, and increase overseas revenues 5 times to Rmb7.5bn. ByteDance declined to comment on the figures.

TikTok’s sister app in China, Douyin, is the main driver of the company’s sales, and ByteDance now has nearly a fifth of the local online advertising market, according to investor Tiger Global, suggesting annual sales of $15bn.

But while he has been named as Bytedance’s chief operating officer, Mr Mayer’s remit is the overseas business. He will not have oversight of the company’s China operations.

“The COO title seems misleading to me. He’s really COO of everything outside of China. The important revenue-generating parts of the business are not under his control,” noted Matthew Brennan, founder of ChinaChannel, a research firm.

Mr Mayer’s background indicates that TikTok may invest more in content. It is already exploring whether to commission professional publishers and reality shows, and ways of monetising its roster of creators.

His hire is “a clear sign they [ByteDance] want to be a buttoned-up media company,” said one music industry executive involved in negotiations with TikTok. “The disrupters’ playbook got them to this point. But the hiring of Kevin Mayer suggests that their ambitions to scale up and IPO . . . that will take priority.”

>>> TradeGate Pre-Market Indications

DAX:
  • Bayer (BAYN TH) +4.5%
    • Bayer Said to Reach Deals on Big Share of 125,000 Roundup Suits
  • Deutsche Bank (DBK TH) +2.2%
  • Wirecard (WDI TH) +1.9%
  • Fresenius SE (FRE TH) +1.6%
  • MTU Aero (MTX TH) +1.5%
MDAX:
  • Deutsche PBB (PBB TH) +3.5%
  • Hochtief (HOT TH) +2.6%
  • Cancom (COK TH) +2.4%
  • Fraport (FRA TH) +2.4%
  • TeamViewer (1UD TH) +2.2%
  • TAG Immobilien (TEG TH) -1.6%
SDAX:
  • Traton (8TRA TH) +3.6%
  • Takkt (TTK TH) +2.9%
  • Encavis (CAP TH) +2.8%
  • Hamburger Hafen (HHFA TH) +2.8%
  • Sixt (SIX2 TH) +2.8%
  • Vossloh (VOS TH) -1%
  • LPKF (LPK TH) -1.3%
    • LPKF Roadshow Scheduled By Hauck & Aufhaeuser for May 25

>>> Stoxx 600 Pre-Market Indications

  • TUI (TUI1 TH) +5.4%
    • TUI CEO Won’t Rule Out Another Request For State Aid: RP
  • IAG (INR TH) +5.4%
    • U.K. Drafts Plan to Save Strategically Important Firms: FT
  • Bayer (BAYN TH) +4.3%
    • Bayer Said to Reach Deals on Big Share of 125,000 Roundup Suits
  • Carnival Plc (POH1 TH) +3.8%
  • EasyJet (EJT1 TH) +3.6%
  • Total (TOTB TH) +2.8%
  • Unibail (1BR1 TH) +2.4%
  • Fraport (FRA TH) +2.4%
  • Adyen (1N8 TH) +2.3%
  • Telefonica Deutschland (O2D TH) -1.1%
  • HSBC Holdings (HBC1 TH) -1.3%
    • Hong Kong Protests Roar Back After China Tightens Grip on City

>>> What to look at today -25th of May 2020

Asian stocks began the week in mixed fashion as traders weighed more signs of economies reopening around the world against the rise in U.S.-China tensions.
Hong Kong shares extended Friday’s slide, following police clashes with protesters marching against China’s move to crack down on dissent. Stocks climbed in Tokyo, Sydney and Seoul, and fluctuated in Shanghai. S&P 500 futures nudged higher, building on a rally from late in the Friday session. Oil traded near $33 a barrel in New York. Volumes may be light with holidays in the U.S., U.K. and Singapore. China set its daily yuan reference rate at the weakest level since 2008 after the increasing tensions drove the currency to a seven-month low.

Nikkei +1.56% Hang Seng -0.78% CSI +0.05% Shanghai +0.11% Shenzen -0.09%

Eur$ 1.0893 CNH 7.1512 CNY 7.1380 JPY 107.69 GBP 1.2182 CHF 0.9722 RUB 71.4458 WTI$ 33.57 +0.96%

S&P +0.39% Nasdaq +0.50% EuroStoxx +0.79% Dax +0.92% SMI

Macro :
- Big Short in U.S. Stocks Needs Watching, Says One Market Veteran
- Stock Believers Just Won’t Let Go of a Rally for History Books
- D.C. Metro Has Highest Positive Rate of Virus Cases, Birx Says
- German Wage Support May Cost Over 30 Billion Euros: Tagesspiegel

Keep an eye on :
- ADEN SW : Stock Mentionned +vely on the Barrons - https://bit.ly/3edERwN
- AML LN : Aston Martin chief to leave as part of shake-up, Mercedes executive set to take over, further solidifying the relationship between the two carmakers - FT - https://on.ft.com/3cURZGS
- ATL IM : Atlantia to Evaluate Legal Actions to Safeguard Company
- ATL IM : Autostrade’s Fate Remains Up for Debate, Cancelleri Tells Stampa
- BAYN GY : Bayer Said to Reach Deals on Big Share of 125,000 Roundup Suits
- ATL IM : Conte Unlikely to Accept Atlantia Offer on Autostrade: Stampa
- DBK GY : Deutsche Bank Asks Top Managers to Forego a Month’s Pay
- EUCAR FP : HErtz Filed for bankruptcy ($19b in debt & 700k vehicules), Icahn ows 38.95% of the co. - https://on.wsj.com/2XlyKjm
- FCA IM : Italy’s Gualtieri Confident About State-Backed Loan for Fiat
- FUR NA : Fugro Gets $17.3m as First Share Proceeds From HMN Divestment
- GILD US : Gilead’s Remdesivir Helped Only Those on Oxygen, Study Says - Disappointing
- KGX GY : Kion Gets Additional Credit Facility of Up to EU1b
- KNIN SW : Kuehne+Nagel May Cut Jobs on Virus: Main Shareholder Tells Welt
- LAND LN : Hong Kong’s Lifestyle International Buys Land Securities Shares
- LSE LN : Italian State Could Take Borsa Stake, Conte Tells Milano Finanza
- LHA GY : Lufthansa Would Have to Repay State Aid by End-2023, Bild Says
- LHA GY : Lufthansa Rescue Deal Delayed by EU Concerns About Terms: HB
- LHA GY : Reuters U.S. News: Lufthansa to resume flights to 20 destinations from mid-June https://t.co/5yPai34dtF https://t.co/UttqbKB9uw
- MVV1 GY : German Coal-Power Firms Seek Compensation, Boersen-Zeitung Says
- UG FP : Macron to Unveil Steps for French Auto Sector Tuesday, AFP Says
- RNO FP : Nissan, Renault Need Alliance More Than Ever to Survive Pandemic
- RR/ LN : Rolls-Royce Raises Pressure on Suppliers to Cut Prices: FT
- SAN FP : Sanofi: Dupixent Esophagitis Trial Meets Co-Primary Endpoints
- TUI LN : TUI CEO Won’t Rule Out Another Request For State Aid: RP
- UCG IM : UniCredit to Take Part in Intesa-UBI Antitrust Review, Sole Says
- ZEAL DC : FDA Accepts Zealand’s NDA for Dasiglucagon Hypopal Rescue Pen